Refinancing vs Repricing: Which is Better for You? | Homejourney
Repricing is better if you're within the same bank, want quick savings with low fees (around $800), and your lock-in period has ended. Refinancing suits switching banks for maximum savings (potentially 1-2% lower rates), special features like cash rebates, or better packages from DBS, OCBC, or UOB—but expect higher costs ($2,000+) and 3-month timelines.
Homejourney prioritizes your safety and trust by verifying rates from all major banks and helping you calculate real savings. This cluster dives deep into Refinancing vs Repricing: Which is Better for You, building on our pillar guide to Singapore home loans. Discover when to refinance mortgage, best time refinance, and interest rate trigger points tailored for HDB and private property owners.[1][2][3]
What is Repricing vs Refinancing in Singapore?
Repricing means switching to a new interest rate package with your current bank after the lock-in period (typically 2-3 years) ends. It's fast—effective in about 1 month—and costs $300-$1,000 in admin fees, often subsidized.[2][3]
Refinancing involves taking a new loan from a different bank, releasing your property title deed, and incurring legal fees ($1,500-$2,000 for HDB, $1,800-$2,000 for private) plus valuation ($150-$700). Total costs: $2,000-$3,000, but banks like OCBC and DBS often waive them for loans over $200,000.[1][2]
Key difference: Repricing limits you to your bank's packages (e.g., SORA or fixed rates), while refinancing lets you shop DBS, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, or Citibank for the best fit.[2]
Costs Breakdown: Refinancing vs Repricing
Don't overlook hidden costs—calculate your break-even point (months to recover fees via savings). For example, repricing saves $500/month at $800 fee? Break-even: 2 months. Refinancing at $2,500 fee with $600/month savings? 4 months.[3]
| Aspect | Repricing | Refinancing |
|---|---|---|
| Fees | $300-$1,000 | $2,000-$3,000 (often waived) |
| Timeline | 1 month | 3 months |
| Savings Potential | Limited to bank | Higher (e.g., 1.48% fixed from competitors) |
Real example: An HDB owner in Toa Payoh repriced DBS from 3% to 1.6% SORA-linked, saving $500/month instantly. Another refinanced to OCBC for cash rebates and free conversion after year 1.[1][4]
When to Refinance Mortgage: Timing is Everything
The best time refinance is at lock-in period end to avoid penalties (2-5% of loan). With 3M SORA at 1.34% (3-year low), now's an interest rate trigger—especially if your rate exceeds 2.6% (HDB benchmark).[1]
Refinance timing tips: Act 3-6 months before lock-in ends. HDB owners: Note you can't revert to HDB loans post-refinance. Track rates on Homejourney's real-time SORA tool at https://www.homejourney.sg/bank-rates.[1]
SORA (Singapore Overnight Rate Average) is the key benchmark for floating rates. Banks peg loans to 3M/6M SORA + margin (0.2-0.5%).
The chart below shows recent interest rate trends in Singapore:
As seen, rates dropped from 3%+ in 2024 to 1.55-1.8% in 2025, driving refinancing waves (35-40% YoY surge).[1]
Financial Analysis: Real Savings Examples
For a $500,000 HDB loan (30 years): Current 3% vs new 1.6% repricing saves ~$450/month ($5,400/year). Refinancing to UOB's 1.48% fixed + $2,000 rebate? Net savings $520/month after fees.[1][2]
Break-even formula: Fees / Monthly Savings = Months to recover. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator for your numbers. Insider tip: Negotiate rebates—banks compete via Homejourney's multi-bank submission.[2]
Compare top rates on Homejourney from DBS, OCBC, UOB, HSBC, and more. See our related guide: Best Bank Refinancing Rates Comparison 2026 | Homejourney .
Step-by-Step Guide: Reprice or Refinance
- Check eligibility: Loan tenure left >10 years; LTV <75% (HDB rules). Use Homejourney's tool.
- Compare rates: Visit https://www.homejourney.sg/bank-rates for live quotes.
- Apply via Singpass: One form to all banks—get multiple offers fast.
- Prepare docs: NRIC, title deed, income proof, valuation report.
- Close deal: Legal fees processed; new loan activates. Track via Homejourney dashboard.
Timeline: Reprice in 30 days; refinance 90 days. Pro tip: Time for lock-in period end to maximize When to Refinance Home Loan in Singapore: Homejourney Guide .
Money-Saving Strategies with Homejourney
- Submit one app to DBS/OCBC/UOB/HSBC—let banks bid for you.
- Haggle: "Match OCBC's 1.48% or I walk."
- Stack rebates: Up to $2,000 cash + fee waivers.
- Combine with property search on https://www.homejourney.sg/search for upgrades.
Disclaimer: Rates fluctuate; consult Homejourney Mortgage Brokers. This isn't financial advice—verify with MAS/HDB guidelines.[1]
FAQ: Refinancing vs Repricing in Singapore
Q: When should I refinance my HDB loan?
A: At lock-in end if bank rates <2.6% HDB rate, with >$200k outstanding for fee waivers. Can't revert to HDB.[1][5]
Q: Is repricing free?
A: Fees $800 avg., but often subsidized. Faster than refinancing.[3]
Q: Best interest rate trigger for action?
A: 0.5%+ drop from current rate, post-lock-in. Track SORA on Homejourney.[1]
Q: How to calculate if worth it?
A: Use break-even math; try our tool at https://www.homejourney.sg/bank-rates#calculator. See How to Calculate If Refinancing is Worth It | Homejourney .
Q: Hidden costs of refinancing?
A: Legal/valuation; check waivers. Full details in Hidden Costs: Refinancing vs Repricing - Which to Choose in 2026 | Homejourney .
Ready to save? Compare refinancing rates on Homejourney today at https://www.homejourney.sg/bank-rates—submit once via Singpass, get offers from all banks. For full home loan mastery, read our pillar guide. Homejourney: Your trusted partner for safe, transparent property decisions.
